Spending as a share of GDP: USA 38%; Germany 42%

Dec 5, 2011
385
32
16
Total spending (federal, state and local). Only 4 points difference

Germany has a national VAT of 19% and will balance the budget in 2013. The VAT in the EU ranges from 15% in Luxembourg to 25% in Denmark and Sweden and 27% in Hungary. No member state is allowed to cut it below 15%.

Revenue structure in the European Union (source: Eurostat):
- 50% from taxes on labour
- 33% from taxes on consumption
- 16% from taxes on capital


It seems that the "free stuff and tax the rich" propaganda is successful: according to recent polls, most Americans oppose spending cuts in social programs and defense and support tax hikes only for the top 2%. That's pretty illogical.

You can go after the wealthy, create a tax rate of 75% for millionaires like France... but it will never be enough. Eventually, if you want a spending level of 35-40% of GDP, you have to increase taxes on everyone (or create new ones).
 
Germany is supporting practically the entire European Union and it's Euro which is sinking fast.

Interesting that both World Wars were preceded by German Economic Might. Hmmm.
 

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